Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 21, 2014 | Jun. 30, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'Integrated Inpatient Solutions, Inc. | ' | ' |
Entity Central Index Key | '0001174672 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $299,866 |
Entity Common Stock, Shares Outstanding | ' | 48,612,365 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash | $538,633 | $927,895 |
Refundable income taxes | 121,677 | 69,585 |
Prepaid expenses and other current assets | ' | 300,000 |
Assets from discontinued operations | ' | 258,668 |
Total current assets | 660,310 | 1,556,148 |
Property and equipment, net | 3,567 | 11,824 |
Other assets | ' | ' |
Deposits | 954 | 6,000 |
Assets from discontinued operations | ' | 144,222 |
Other Assets | 954 | 150,222 |
TOTAL ASSETS | 664,831 | 1,718,194 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued liabilities | 51,407 | 61,012 |
Liabilities from Discontinued Operations | 119,379 | 79,379 |
Loans payable - related parties | ' | 7,000 |
Total current liabilities | 170,786 | 147,391 |
TOTAL LIABILITIES | 170,786 | 147,391 |
Stockholders Equity | ' | ' |
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 250,000 shares issued and oustanding as of December 31, 2013 and December 31, 2012, respectively | 25 | 25 |
Common stock, $0.0001 par value, 100,000,000 shares authorized, 48,612,365 shares issued and outstanding as of December 31, 2013 and December 31, 2012, respectively. | 4,861 | 4,861 |
Additional paid-in capital | 137,114 | 137,114 |
Retaining earnings | 352,045 | 1,428,803 |
Total Stockholders Equity | 494,045 | 1,570,803 |
Total Liabilities and Stockholders Equity | $664,831 | $1,718,194 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 250,000 | 250,000 |
Preferred Stock, Shares Outstanding | 750,000 | 250,000 |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 48,612,365 | 48,612,365 |
Common Stock, Shares Outstanding | 48,612,365 | 48,612,365 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | ' | ' |
Revenue | $14,102 | ' |
Cost of services | 21,908 | ' |
Gross Loss | -7,806 | ' |
Operating expenses | ' | ' |
General and administrative | 458,401 | 100,877 |
Loss from continuing operations | -466,207 | -100,877 |
Benefit from income taxes on continuing operations | 43,948 | 31,579 |
Interest Income | 101 | ' |
Loss from continuing operations | ($422,158) | ($69,298) |
Discontinued operations: | ' | ' |
Income (loss) from discontinued operations | -723,338 | 4,338,724 |
Benefit (provision) from income taxes | -68,738 | 1,610,509 |
Income (loss) on discontinued operations | -654,600 | 2,728,215 |
Net income (loss) | ($1,076,758) | $2,658,917 |
Net income (loss) per share - basic | ' | ' |
Loss from continuing operations | ($0.01) | $0 |
Income (loss) from discontinued operations | ($0.01) | $0.05 |
Net income (loss) per share - basic | ($0.02) | $0.05 |
Net income (loss) per share - diluted | ' | ' |
Income (loss) from discontinued operations | ($0.01) | $0.05 |
Net income (loss) per share - diluted | ($0.02) | $0.05 |
Weighted average number of common shares outstanding - basic | 48,612,365 | 46,597,338 |
Weighted average number of common shares outstanding - diluted | 48,612,365 | 49,097,338 |
Shareholders_Equity
Shareholders Equity (USD $) | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Total |
Beginning Balance, Value at Dec. 31, 2011 | $75 | $4,361 | $137,564 | $201,033 | $343,033 |
Beginning Balance, Shares at Dec. 31, 2011 | 750,000 | 43,612,365 | ' | ' | ' |
Conversion of preferred stock into common stock, Shares | -500,000 | 5,000,000 | ' | ' | 2,500,000 |
Conversion of preferred stock into common stock, Value | -50 | 500 | -450 | ' | ' |
Dividends Paid | ' | ' | ' | -1,431,147 | -1,431,147 |
Net Income | ' | ' | ' | 2,658,917 | 2,658,917 |
Ending Balance, Value at Dec. 31, 2012 | 25 | 4,861 | 137,114 | 1,428,803 | 1,570,803 |
Ending Balance, Shares at Dec. 31, 2012 | 250,000 | 48,612,365 | ' | ' | ' |
Conversion of preferred stock into common stock, Shares | ' | ' | ' | ' | 2,500,000 |
Net Income | ' | ' | ' | -1,076,758 | -1,076,758 |
Ending Balance, Value at Dec. 31, 2013 | $25 | $4,861 | $137,114 | $352,045 | $494,045 |
Ending Balance, Shares at Dec. 31, 2013 | 250,000 | 48,612,365 | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Cash Flows [Abstract] | ' | ' |
Net (Loss) Income | ($1,076,758) | $2,658,917 |
Depreciation | 8,257 | 2,797 |
Deferred income tax | ' | 12,600 |
Gain on sale of assets | ' | -6,500,000 |
Accounts receivable | 137,471 | 1,049,083 |
Refundable income taxes | -52,092 | -47,238 |
Prepaid expenses and other current assets | 121,197 | -53,896 |
Other assets | 149,268 | -144,222 |
Accounts payable and accrued liabilities | -9,605 | -233,544 |
Accrued legal settlement | 40,000 | -38,486 |
Net cash used in operating activities | -682,262 | -3,293,989 |
Proceeds from sale of assets | 300,000 | 6,200,000 |
Net cash provided by investing activities | 300,000 | 6,200,000 |
Repayment of Loan Payable | -7,000 | ' |
Overdraft | ' | -20,475 |
Repayment of long term debt | ' | -494,194 |
Loans payable - related parties | ' | -46,000 |
Dividends paid | ' | -1,431,146 |
Net cash used in financing activities | -7,000 | -1,991,815 |
Net (decrease) increase in cash | -389,262 | 914,196 |
Cash - Beginning of year | 927,895 | 13,699 |
Cash - End of the period | 538,633 | 927,895 |
Cash paid for interest | ' | 6,797 |
Cash paid for income taxes | ' | 1,613,568 |
Common stock issued upon conversion of preferred stock | ' | $500 |
1_ORGANIZATION_AND_SUMMARY_OF_
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||||||||||
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||
The Company was incorporated in Florida on July 31, 2001. On September 21, 2001 the Company was acquired by PlaNet.Com, Inc., a Nevada public, non-reporting corporation. Pla.Net.Com, Inc. was considered a shell at the time of acquisition and therefore the acquisition was treated as a reverse merger (the acquired company is treated as the acquiring company for accounting purposes). Pla.Net.Com, Inc. changed its name to Inpatient Clinical Solutions, Inc. immediately after the merger. | |||||||||||||||||||||||||
Through March 2013, the Company provided health care services in South Florida. The Company provided inpatient physician care to various health care facilities and health plans in the South Florida area. Prior to February 2012, the Company provided Hospitalist services at acute care hospitals. Hospitalists focus on a patient’s care from the time of admission to discharge, working in close consultation with primary care physicians, other referring physicians and medical providers to coordinate the inpatient care delivery system and manage the entire inpatient episode of care. | |||||||||||||||||||||||||
As more fully described in note 3, the Company sold the hospitalist business during February 2012. At that time, the Company changed its name from Inpatient Clinical Solutions, Inc. to Integrated Inpatient Solutions, Inc. In November 2011, the Company entered into an agreement with a hospital to provide intensivist services. Under the exclusive agreement, the Company provided critical care intensivist coverage for all medical and surgical intensive care unit patients at the hospital. The physicians include full-time employees, part-time and temporary physicians as well as contracted physician providers. The intensivist agreement was terminated in January 2013. | |||||||||||||||||||||||||
The Company provides interior design services targeting budget minded individuals. The business operates under the trade name Integrated Interior Design. The Company earns revenues from providing decorator services which are billed on hourly and per diem rates. The interior design business currently operates in South Florida and will expand regionally and nationally. The business provides interior design, interior staging, accompanied shopping, paint color selection, architectural drawing and other design services. | |||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The areas involving the most significant use of estimates include legal contingencies, deferred tax benefits, refundable income taxes, estimated realizable value of accounts receivable, contractual adjustment of gross billings and payables for known claims and liabilities for claims incurred but not reported (IBNR) related to medical malpractice. These estimates are based on knowledge of current events and anticipated future events. The Company adjusts these estimates each period as more current information becomes available. The impact of any changes in estimates is included in the determination of earnings in the period in which the estimate is adjusted. Actual results may ultimately differ materially from those estimates. | |||||||||||||||||||||||||
Cash | |||||||||||||||||||||||||
The Company considers cash in banks and other highly liquid investments with insignificant interest rate risk and maturities of three months or less at the time of acquisition to be cash and cash equivalents. At December 31, 2013 and December 31, 2012, the Company had no cash equivalents. The Company maintains cash accounts in financial institutions that are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). Deposits in excess of the FDIC insurance amount of $250,000 totaled approximately $245,000 and $637,000 at December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||
Accounts Receivable | |||||||||||||||||||||||||
The determination of contractual and bad debt allowances constitutes a significant estimate. Accounts receivable represent amounts due from third-party payors, including government sponsored Medicare and Medicaid programs, insurance companies and patients for medical services provided. Accounts receivable are recorded and stated at the amount expected to be collected and have been adjusted to reflect the differences between charges and the estimated reimbursable amounts. | |||||||||||||||||||||||||
Property and Equipment | |||||||||||||||||||||||||
Property and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful life of the asset. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. | |||||||||||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||||||||||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. | |||||||||||||||||||||||||
The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives, against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company determined that there were no impairments of long-lived assets as of December 31, 2013 and December 31, 2012. | |||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||
U.S. GAAP for fair value measurements establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to quoted market prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. | |||||||||||||||||||||||||
The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, deposits, accounts payable and accrued liabilities, approximate their fair values because of the short maturity of these instruments. | |||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
Interior Design - The Company follows ASC 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement that the services have been rendered to the customer, the sales price is fixed or determinable, and collectability is reasonably assured. | |||||||||||||||||||||||||
Hospitalist/Intensivist - Revenue consists primarily of net patient service revenues that are recorded based upon established billing rates less allowances for contractual adjustments. Revenues are recorded during the period the healthcare services are provided, based upon the estimated amounts due from the patients and third party payors, including federal and state agencies (under the Medicare and Medicaid programs), managed care health plans and commercial insurance companies. Estimates of contractual allowances under third-party payor arrangements are based upon the payment terms specified in the related contractual agreements. Third-party payor contractual payment terms are generally based upon predetermined rates per diagnosis, per diem rates, or discounted fee-for-service rates. | |||||||||||||||||||||||||
The Company derives significant portions of its revenues from third party insurers and accordingly receives discounts from standard charges. The Company must estimate the total amount of these discounts to prepare its financial statements. The various managed care contracts under which these discounts must be calculated are complex and are subject to interpretation and adjustment. These interpretations sometimes result in payments that differ from the Company’s estimates. Additionally, updated regulations and contract renegotiations occur frequently, necessitating regular review and assessment of the estimation process by management. Changes in estimates related to the allowance for contractual discounts affect revenues reported in the Company’s statement of operations in the period of the change. | |||||||||||||||||||||||||
The Medicare and Medicaid reimbursing entities (“Entities”) provide a substantial portion of the Company revenues. These Entities are subject to numerous laws and regulations of federal, state and local governments, including but not limited to matters such as licensure, accreditation, participation requirements, reimbursement formulas and fraud and abuse. Compliance with standards and other regulations can be subject to future government review and interpretation. | |||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
The Company follows Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date. | |||||||||||||||||||||||||
The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25. | |||||||||||||||||||||||||
Earnings (Loss) Per Share | |||||||||||||||||||||||||
The Company computes earnings (loss) per share in accordance with the provisions of FASB ASC Topic 260, "Earnings Per Share," which specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. Basic earnings (loss) per share are computed by dividing net earnings (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed assuming the exercise of dilutive stock options under the treasury stock method and the related income tax effects. | |||||||||||||||||||||||||
As of December 31, 2013 and 2012, we had 250,000 shares of Convertible Preferred Stock outstanding convertible into 2,500,000 common shares. | |||||||||||||||||||||||||
The following tables set forth the computation of basic and diluted earnings per share as shown on the face of the accompanying Statements of Operations: | |||||||||||||||||||||||||
For the year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Net Income | Shares | Per Share Amount | Net Income | Shares | Per Share Amount | ||||||||||||||||||||
Basic Earnings per Share: | $ | (1,076,758 | ) | $ | 2,658,917 | ||||||||||||||||||||
Net income (loss) | |||||||||||||||||||||||||
Amount allocated to participating securities | — | (210,000 | ) | ||||||||||||||||||||||
Net income (loss) available for basic common shares | $ | (1,076,758 | ) | 48,612,365 | $ | (0.02 | ) | $ | 2,448,917 | 46,597,338 | $ | 0.05 | |||||||||||||
and basic earnings per share | |||||||||||||||||||||||||
Diluted Earnings per Share: | |||||||||||||||||||||||||
Net income (loss) | $ | (1,076,758 | ) | $ | 2,658,617 | ||||||||||||||||||||
Amount allocated to participating securities | — | (210,000 | ) | ||||||||||||||||||||||
Adjustment for dilutive potential common shares | — | — | — | 2,500,000 | |||||||||||||||||||||
Net income (loss) available for diluted common shares and diluted earnings per share | $ | (1,076,758 | ) | 48,612,365 | $ | (0.02 | ) | 2,448,917 | 49,097,338 | $ | 0.05 | ||||||||||||||
Reclassification | |||||||||||||||||||||||||
Certain reclassifications, including discontinued operations, have been made to the prior years data to conform to current year presentation. These reclassifications had no effect on net income (loss). | |||||||||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||||||
There have been no accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2013 that are expected to have a material impact on the Company’s financial position, results of operations or cash flows. Accounting pronouncements that became effective during the year ended December 31, 2013 did not have a material impact on disclosures or on the Company’s financial position, results of operations or cash flows. |
2_ASSET_SALE
2. ASSET SALE | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
2. ASSET SALE | ' |
NOTE 2 - ASSET SALE | |
On March 19, 2012, the Company executed an Asset Purchase Agreement (“APA”) with an unrelated third party to sell the facility agreements, provider agreements, payor contracts and other intangible assets related to the hospitalist business for a total purchase price of $6,500,000. The carrying value of the purchased assets was $0 resulting in a total gain on the sale of $6,500,000. The APA did not include rights to any cash, accounts receivable, prepaid expenses, deposits, property or equipment. No obligations or liabilities existing prior to the closing of the APA were assumed by the purchaser. | |
Pursuant to the APA, $300,000 was placed in escrow for the purposes of indemnifying the sellers for a period of eighteen months. After eighteen months, the funds were available to the Company to use for operations. The Company received the entire $300,000 of the escrow funds in November 2013. | |
Under the APA, the Company and its officers are restricted from conducting hospitalist services for a period of 36 months from the closing date within a 50 mile radius of any facility from which it had previously conducted such services. |
3_PREPAID_EXPENSES_AND_OTHER_C
3. PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
3. PREPAID EXPENSES AND OTHER CURRENT ASSETS | ' | ||||||||
NOTE 3 - PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||||||||
Prepaid expenses and other current assets consist of the following at December 31, 2013 and December 31, 2012: | |||||||||
2013 | 2012 | ||||||||
Escrow Deposit held for indemnification | $ | — | $ | 300,000 | |||||
$ | — | $ | 300,000 | ||||||
4_PROPERTY_AND_EQUIPMENT
4. PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
4. PROPERTY AND EQUIPMENT | ' | ||||||||||
NOTE 4 - PROPERTY AND EQUIPMENT | |||||||||||
The Company’s property and equipment consisted of the following at December 31, 2013 and 2012: | |||||||||||
Estimated | |||||||||||
2013 | 2012 | Useful Life | |||||||||
Computer and Office Equipment | $ | 33,868 | $ | 33,868 | 5 -7 years | ||||||
Furniture and Fixtures | 18,530 | 18,530 | 7 years | ||||||||
$ | 52,398 | $ | 52,398 | ||||||||
Less: Accumulated Depreciation | (48,831 | ) | (40,574 | ) | |||||||
$ | 3,567 | $ | 11,824 | ||||||||
Depreciation expense for the years ended December 31, 2013 and 2012 was $8,257 and $2,797 respectively. |
5_INCOME_TAXES
5. INCOME TAXES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||
5. INCOME TAXES | ' | ||||||||||||||||||||||||
NOTE 5 - INCOME TAXES | |||||||||||||||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company’s net current and deferred income tax provision are as follows: | |||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | ||||||||||||||||||||||||
Total | Continuing Operations | Discontinued Operations | Total | Continuing Operations | Discontinued Operations | ||||||||||||||||||||
Current (expense) benefit | $ | (112,686 | ) | $ | (43,948 | ) | $ | (68,738 | ) | $ | 1,578,930 | $ | (31,579 | ) | $ | 1,610,509 | |||||||||
Deferred tax benefit | 128,848 | 50,505 | 78,343 | — | — | — | |||||||||||||||||||
Increase in valuation allowance | (128,848 | ) | (50,505 | ) | (78,343 | ) | — | — | — | ||||||||||||||||
Income tax (benefit) expense | $ | (112,686 | ) | $ | (43,948 | ) | $ | (68,738 | ) | $ | 1,578,930 | $ | (31,579 | ) | $ | 1,610,509 | |||||||||
The following is a reconciliation of the effective income tax rate to the Federal statutory rate: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Income tax calculated at statutory rate | 34.25 | % | 30 | % | |||||||||||||||||||||
State income taxes, net of Federal tax benefit | 5.5 | 5.5 | |||||||||||||||||||||||
Temporary differences | (2.15 | ) | — | ||||||||||||||||||||||
Provision for income taxes | 37.6 | % | 35.5 | % | |||||||||||||||||||||
The accompanying financial statements include refundable income taxes of $121,677 and $69,585 at December 31, 2013 and 2012. These amounts represent the excess of federal and state income tax deposits over the expected tax liability. | |||||||||||||||||||||||||
During 2013, the Company recognized an income tax benefit of approximately $112,686 arising from the use of operating loss carrybacks. In addition, the Company recognized a deferred tax benefit of $110,000 resulting from the write-off of prepaid malpractice insurance policy premiums that will be amortized over a three year period for income tax reporting purposes. In addition, the Company recognized a deferred tax benefit of $19,000 related to accrued malpractice expenses not deductible until paid for income tax reporting purposes. The Company recorded an increase in the valuation allowance of $129,000 for the deferred tax benefit because of uncertainty of realization. The Company had no deferred tax assets at December 31, 2012. The Company’s year 2010 through 2013 tax returns remain subject to review by the Internal Revenue Service and by state tax authorities. |
6_STOCKHOLDERS_EQUITY
6. STOCKHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
6. STOCKHOLDERS EQUITY | ' |
NOTE 6 - STOCKHOLDERS' EQUITY | |
Preferred Stock | |
The Company has 10,000,000 authorized shares of non-redeemable, convertible preferred stock with a par value of $.0001. Each share of preferred stock is convertible to 10 shares of common stock. In May 2012, 500,000 of the 750,000 shares of preferred stock outstanding were converted into 5 million shares of common stock. | |
Common Stock | |
On February 14, 2012, the Company's shareholders approved an amendment to the Company’s Articles of Incorporation to increase the authorized number of shares of common stock, $.0001 par value, from 50,000,000 shares to 100,000,000 shares. |
7_COMMITMENT_AND_CONTINGENCIES
7. COMMITMENT AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
7. COMMITMENT AND CONTINGENCIES | ' |
NOTE 7- COMMITMENT AND CONTINGENCIES | |
Commitment | |
In July 2007, the Company entered into a one year office lease agreement at $3,000 per month. The lease agreement expired and became a month-to-month arrangement. The leased premises were vacated in 2013 and the lease has since been terminated. In April 2013, the Company entered into a new one year office lease agreement at $450 per month, the lease expires in May 2014. Total rent expense for the year ended December 31, 2013 and December 31, 2012 was $12,259 and $23,150, respectively. | |
Contingencies | |
While providing healthcare services in the ordinary course of our business, the Company became involved in lawsuits and legal proceedings involving claims of medical malpractice related to medical services provided by our affiliated physicians. The Company is currently involved in the settlement stages of one such matter. The accompanying financial statements include an accrual of $50,000 for this matter under the caption accrued legal settlement. This accrual represents the Company’s anticipated deductible on the settlement. | |
In November 2011, the Company became involved in a legal settlement relating to a malpractice claim for $100,000. As a result of the settlement agreement, the Company agreed to pay a total amount of $100,000. As of December 31, 2013 and December 31, 2012, the remaining balance is approximately $69,000 which is due in equal yearly installments of $20,000 over the next four years. The Company made no payments on this obligation during 2013. | |
The Company is currently not aware of any other such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse affect on its business, financial condition or operating results except for the item described below. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm its business. | |
Regulatory Matters | |
Laws and regulations governing the Medicare and Medicaid programs are complex and subject to interpretation. Compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action including fines, penalties, and exclusion from the Medicare and Medicaid programs. We believe that we are in compliance with all applicable laws and regulations. We are not aware of any specific investigations involving allegations of potential wrongdoing. |
8_CONCENTRATIONS
8. CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2013 | |
Risks and Uncertainties [Abstract] | ' |
8. CONCENTRATIONS | ' |
NOTE 8 - CONCENTRATIONS | |
Revenue from Medical Services | |
The Company has one affiliated medical provider, who is a director of the Company with revenues that represented approximately 4% and 1% of net revenues as of December 31, 2013 and December 31, 2012, respectively. | |
The Company’s top 3 unaffiliated medical providers represented approximately 96% of revenues for the year ended December 31, 2013. The Company’s top 5 unaffiliated providers represented approximately 94% of revenues for the year ended December 31, 2012. The Company enjoyed good relations with these providers. However, the loss of any of these providers, if they had not been replaced, could have had an adverse impact on the Company’s operations. |
9_DISCONTINUED_OPERATIONS
9. DISCONTINUED OPERATIONS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
9. DISCONTINUD OPERATIONS | ' | ||||||||
NOTE 9 - Discontinued Operations | |||||||||
In March 2013, management decided to exit the health care provider business and change the Company's strategy in order to focus on its interior design business. Accordingly, the financial statements have been presented in accordance with ASC 205-20, Discontinued Operations. | |||||||||
The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the year ended December 31, 2013 and 2012: | |||||||||
Year ended December 31, | |||||||||
2013 | 2012 | ||||||||
Patient Service Revenue (net of contractual | |||||||||
allowances and discounts) | $ | 136,377 | $ | 2,785,498 | |||||
Operating expenses: | |||||||||
Cost of services - physicians | 234,964 | 3,234,533 | |||||||
General and administrative | 624,751 | 1,705,449 | |||||||
Total operating expenses | 859,715 | 4,939,982 | |||||||
Other income (expenses) | |||||||||
Interest expense, net | — | (6,792 | ) | ||||||
Gain on sale of assets | — | 6,500,000 | |||||||
Total other income (expenses) | — | 6,493,208 | |||||||
Income (loss) on discontinued operations | $ | (723,338 | ) | $ | 4,338,724 | ||||
As of December 31, 2012, assets and liabilities from discontinued operations are listed below: | |||||||||
31-Dec-12 | |||||||||
Accounts receivable, net of allowances | $ | 137,471 | |||||||
Prepaid medical insurance, Current | 121,197 | ||||||||
Current assets from discontinued operations | $ | 258,668 | |||||||
Prepaid medical insurance, long term | $ | 144,222 | |||||||
Long term assets from discontinued operations | $ | 144,222 | |||||||
Accrued Legal Settlements | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Accrued Legal Settlements | $ | 119,379 | $ | 79,379 | |||||
1_ORGANIZATION_AND_SUMMARY_OF_1
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Organization Description | ' | ||||||||||||||||||||||||
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||
The Company was incorporated in Florida on July 31, 2001. On September 21, 2001 the Company was acquired by PlaNet.Com, Inc., a Nevada public, non-reporting corporation. Pla.Net.Com, Inc. was considered a shell at the time of acquisition and therefore the acquisition was treated as a reverse merger (the acquired company is treated as the acquiring company for accounting purposes). Pla.Net.Com, Inc. changed its name to Inpatient Clinical Solutions, Inc. immediately after the merger. | |||||||||||||||||||||||||
Through March 2013, the Company provided health care services in South Florida. The Company provided inpatient physician care to various health care facilities and health plans in the South Florida area. Prior to February 2012, the Company provided Hospitalist services at acute care hospitals. Hospitalists focus on a patient’s care from the time of admission to discharge, working in close consultation with primary care physicians, other referring physicians and medical providers to coordinate the inpatient care delivery system and manage the entire inpatient episode of care. | |||||||||||||||||||||||||
As more fully described in note 3, the Company sold the hospitalist business during February 2012. At that time, the Company changed its name from Inpatient Clinical Solutions, Inc. to Integrated Inpatient Solutions, Inc. In November 2011, the Company entered into an agreement with a hospital to provide intensivist services. Under the exclusive agreement, the Company provided critical care intensivist coverage for all medical and surgical intensive care unit patients at the hospital. The physicians include full-time employees, part-time and temporary physicians as well as contracted physician providers. The intensivist agreement was terminated in January 2013. | |||||||||||||||||||||||||
The Company provides interior design services targeting budget minded individuals. The business operates under the trade name Integrated Interior Design. The Company earns revenues from providing decorator services which are billed on hourly and per diem rates. The interior design business currently operates in South Florida and will expand regionally and nationally. The business provides interior design, interior staging, accompanied shopping, paint color selection, architectural drawing and other design services. | |||||||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The areas involving the most significant use of estimates include legal contingencies, deferred tax benefits, refundable income taxes, estimated realizable value of accounts receivable, contractual adjustment of gross billings and payables for known claims and liabilities for claims incurred but not reported (IBNR) related to medical malpractice. These estimates are based on knowledge of current events and anticipated future events. The Company adjusts these estimates each period as more current information becomes available. The impact of any changes in estimates is included in the determination of earnings in the period in which the estimate is adjusted. Actual results may ultimately differ materially from those estimates. | |||||||||||||||||||||||||
Cash | ' | ||||||||||||||||||||||||
Cash | |||||||||||||||||||||||||
The Company considers cash in banks and other highly liquid investments with insignificant interest rate risk and maturities of three months or less at the time of acquisition to be cash and cash equivalents. At December 31, 2013 and December 31, 2012, the Company had no cash equivalents. The Company maintains cash accounts in financial institutions that are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). Deposits in excess of the FDIC insurance amount of $250,000 totaled approximately $245,000 and $637,000 at December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||
Accounts Receivable | ' | ||||||||||||||||||||||||
Accounts Receivable | |||||||||||||||||||||||||
The determination of contractual and bad debt allowances constitutes a significant estimate. Accounts receivable represent amounts due from third-party payors, including government sponsored Medicare and Medicaid programs, insurance companies and patients for medical services provided. Accounts receivable are recorded and stated at the amount expected to be collected and have been adjusted to reflect the differences between charges and the estimated reimbursable amounts. | |||||||||||||||||||||||||
Property and Equipment | ' | ||||||||||||||||||||||||
Property and Equipment | |||||||||||||||||||||||||
Property and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful life of the asset. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. | |||||||||||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||||||||||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. | |||||||||||||||||||||||||
The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives, against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company determined that there were no impairments of long-lived assets as of December 31, 2013 and December 31, 2012. | |||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||
U.S. GAAP for fair value measurements establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to quoted market prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. | |||||||||||||||||||||||||
The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, deposits, accounts payable and accrued liabilities, approximate their fair values because of the short maturity of these instruments. | |||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
Interior Design - The Company follows ASC 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement that the services have been rendered to the customer, the sales price is fixed or determinable, and collectability is reasonably assured. | |||||||||||||||||||||||||
Hospitalist/Intensivist - Revenue consists primarily of net patient service revenues that are recorded based upon established billing rates less allowances for contractual adjustments. Revenues are recorded during the period the healthcare services are provided, based upon the estimated amounts due from the patients and third party payors, including federal and state agencies (under the Medicare and Medicaid programs), managed care health plans and commercial insurance companies. Estimates of contractual allowances under third-party payor arrangements are based upon the payment terms specified in the related contractual agreements. Third-party payor contractual payment terms are generally based upon predetermined rates per diagnosis, per diem rates, or discounted fee-for-service rates. | |||||||||||||||||||||||||
The Company derives significant portions of its revenues from third party insurers and accordingly receives discounts from standard charges. The Company must estimate the total amount of these discounts to prepare its financial statements. The various managed care contracts under which these discounts must be calculated are complex and are subject to interpretation and adjustment. These interpretations sometimes result in payments that differ from the Company’s estimates. Additionally, updated regulations and contract renegotiations occur frequently, necessitating regular review and assessment of the estimation process by management. Changes in estimates related to the allowance for contractual discounts affect revenues reported in the Company’s statement of operations in the period of the change. | |||||||||||||||||||||||||
The Medicare and Medicaid reimbursing entities (“Entities”) provide a substantial portion of the Company revenues. These Entities are subject to numerous laws and regulations of federal, state and local governments, including but not limited to matters such as licensure, accreditation, participation requirements, reimbursement formulas and fraud and abuse. Compliance with standards and other regulations can be subject to future government review and interpretation. | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
The Company follows Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date. | |||||||||||||||||||||||||
The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25. | |||||||||||||||||||||||||
Earnings (Loss) Per Share | ' | ||||||||||||||||||||||||
Earnings (Loss) Per Share | |||||||||||||||||||||||||
The Company computes earnings (loss) per share in accordance with the provisions of FASB ASC Topic 260, "Earnings Per Share," which specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. Basic earnings (loss) per share are computed by dividing net earnings (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed assuming the exercise of dilutive stock options under the treasury stock method and the related income tax effects. | |||||||||||||||||||||||||
As of December 31, 2013 and 2012, we had 250,000 shares of Convertible Preferred Stock outstanding convertible into 2,500,000 common shares. | |||||||||||||||||||||||||
The following tables set forth the computation of basic and diluted earnings per share as shown on the face of the accompanying Statements of Operations: | |||||||||||||||||||||||||
For the year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Net Income | Shares | Per Share Amount | Net Income | Shares | Per Share Amount | ||||||||||||||||||||
Basic Earnings per Share: | $ | (1,076,758 | ) | $ | 2,658,917 | ||||||||||||||||||||
Net income (loss) | |||||||||||||||||||||||||
Amount allocated to participating securities | — | (210,000 | ) | ||||||||||||||||||||||
Net income (loss) available for basic common shares | $ | (1,076,758 | ) | 48,612,365 | $ | (0.02 | ) | $ | 2,448,917 | 46,597,338 | $ | 0.05 | |||||||||||||
and basic earnings per share | |||||||||||||||||||||||||
Diluted Earnings per Share: | |||||||||||||||||||||||||
Net income (loss) | $ | (1,076,758 | ) | $ | 2,658,617 | ||||||||||||||||||||
Amount allocated to participating securities | — | (210,000 | ) | ||||||||||||||||||||||
Adjustment for dilutive potential common shares | — | — | — | 2,500,000 | |||||||||||||||||||||
Net income (loss) available for diluted common shares and diluted earnings per share | $ | (1,076,758 | ) | 48,612,365 | $ | (0.02 | ) | 2,448,917 | 49,097,338 | $ | 0.05 | ||||||||||||||
Reclassifications | ' | ||||||||||||||||||||||||
Certain reclassifications, including discontinued operations, have been made to the prior years data to conform to current year presentation. These reclassifications had no effect on net income (loss). | |||||||||||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||||||||||
Recent Recent Accounting Pronouncements | |||||||||||||||||||||||||
There have been no accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2013 that are expected to have a material impact on the Company’s financial position, results of operations or cash flows. Accounting pronouncements that became effective during the year ended December 31, 2013 did not have a material impact on disclosures or on the Company’s financial position, results of operations or cash flows. |
1_ORGANIZATION_AND_SUMMARY_OF_2
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Earnings Per Share - Basic and Diluted | ' | ||||||||||||||||||||||||
For the year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Net Income | Shares | Per Share Amount | Net Income | Shares | Per Share Amount | ||||||||||||||||||||
Basic Earnings per Share: | $ | (1,076,758 | ) | $ | 2,658,917 | ||||||||||||||||||||
Net income (loss) | |||||||||||||||||||||||||
Amount allocated to participating securities | — | (210,000 | ) | ||||||||||||||||||||||
Net income (loss) available for basic common shares | $ | (1,076,758 | ) | 48,612,365 | $ | (0.02 | ) | $ | 2,448,917 | 46,597,338 | $ | 0.05 | |||||||||||||
and basic earnings per share | |||||||||||||||||||||||||
Diluted Earnings per Share: | |||||||||||||||||||||||||
Net income (loss) | $ | (1,076,758 | ) | $ | 2,658,617 | ||||||||||||||||||||
Amount allocated to participating securities | — | (210,000 | ) | ||||||||||||||||||||||
Adjustment for dilutive potential common shares | — | — | — | 2,500,000 | |||||||||||||||||||||
Net income (loss) available for diluted common shares and diluted earnings per share | $ | (1,076,758 | ) | 48,612,365 | $ | (0.02 | ) | 2,448,917 | 49,097,338 | $ | 0.05 |
3_PREPAID_EXPENSES_AND_OTHER_C1
3. PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
Prepaid Expenses and Other Current Assets | ' | ||||||||
2013 | 2012 | ||||||||
Escrow Deposit held for indemnification | $ | — | $ | 300,000 | |||||
$ | — | $ | 300,000 |
4_PROPERTY_AND_EQUIPMENT_Table
4. PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property and equipment | ' | ||||||||||
Estimated | |||||||||||
2013 | 2012 | Useful Life | |||||||||
Computer and Office Equipment | $ | 33,868 | $ | 33,868 | 5 -7 years | ||||||
Furniture and Fixtures | 18,530 | 18,530 | 7 years | ||||||||
$ | 52,398 | $ | 52,398 | ||||||||
Less: Accumulated Depreciation | (48,831 | ) | (40,574 | ) | |||||||
$ | 3,567 | $ | 11,824 |
5_INCOME_TAXES_Tables
5. INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Net Current and Deferred Income Tax Provision | ' | ||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | ||||||||||||||||||||||||
Total | Continuing Operations | Discontinued Operations | Total | Continuing Operations | Discontinued Operations | ||||||||||||||||||||
Current (expense) benefit | $ | (112,686 | ) | $ | (43,948 | ) | $ | (68,738 | ) | $ | 1,578,930 | $ | (31,579 | ) | $ | 1,610,509 | |||||||||
Deferred tax benefit | 128,848 | 50,505 | 78,343 | — | — | — | |||||||||||||||||||
Increase in valuation allowance | (128,848 | ) | (50,505 | ) | (78,343 | ) | — | — | — | ||||||||||||||||
Income tax (benefit) expense | $ | (112,686 | ) | $ | (43,948 | ) | $ | (68,738 | ) | $ | 1,578,930 | $ | (31,579 | ) | $ | 1,610,509 | |||||||||
Reconciliation of the Effective Income Tax Rate | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Income tax calculated at statutory rate | 34.25 | % | 30 | % | |||||||||||||||||||||
State income taxes, net of Federal tax benefit | 5.5 | 5.5 | |||||||||||||||||||||||
Temporary differences | (2.15 | ) | — | ||||||||||||||||||||||
Provision for income taxes | 37.6 | % | 35.5 | % |
9_DISCONTINUED_OPERATIONS_Tabl
9. DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
Year ended December 31, | |||||||||
2013 | 2012 | ||||||||
Patient Service Revenue (net of contractual | |||||||||
allowances and discounts) | $ | 136,377 | $ | 2,785,498 | |||||
Operating expenses: | |||||||||
Cost of services - physicians | 234,964 | 3,234,533 | |||||||
General and administrative | 624,751 | 1,705,449 | |||||||
Total operating expenses | 859,715 | 4,939,982 | |||||||
Other income (expenses) | |||||||||
Interest expense, net | — | (6,792 | ) | ||||||
Gain on sale of assets | — | 6,500,000 | |||||||
Total other income (expenses) | — | 6,493,208 | |||||||
Income (loss) on discontinued operations | $ | (723,338 | ) | $ | 4,338,724 | ||||
Asset from Discontinued Operations | ' | ||||||||
31-Dec-12 | |||||||||
Accounts receivable, net of allowances | $ | 137,471 | |||||||
Prepaid medical insurance, Current | 121,197 | ||||||||
Current assets from discontinued operations | $ | 258,668 | |||||||
Prepaid medical insurance, long term | $ | 144,222 | |||||||
Long term assets from discontinued operations | $ | 144,222 | |||||||
Accrued Legal Settlements | ' | ||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Accrued Legal Settlements | $ | 119,379 | $ | 79,379 |
1_ORGANIZATION_AND_SUMMARY_OF_3
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share - Basic and Diluted (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Basic Earnings per Share: | ' | ' | ' |
Net income (loss) | ($1,076,758) | ($1,076,758) | $2,658,917 |
Amount allocated to participating securities | ' | ' | -210,000 |
Net income (loss) available for basic common shares and basic earnings per share | -1,076,758 | ' | 2,448,917 |
Net income (loss) available for basic common shares and basic earnings per share, Shares | 48,612,365 | ' | 46,597,338 |
Net income (loss) available for basic common shares and basic earnings per share, Per Share | ($0.02) | ($0.02) | $0.05 |
Diluted Earnings per Share: | ' | ' | ' |
Net income (loss) | -1,076,758 | ' | 2,658,617 |
Amount allocated to participating securities | ' | ' | -210,000 |
Adjustment for dilutive potential common shares, Shares | ' | ' | 2,500,000 |
Net income (loss) available for diluted common shares and diluted earnings per share | ($1,076,758) | ' | $2,448,917 |
Net income (loss) available for diluted common shares and diluted earnings per share, Shares | 48,612,365 | ' | 49,097,338 |
Net income (loss) available for diluted common shares and diluted earnings per share, Per Share | ($0.02) | ($0.02) | $0.05 |
1_ORGANIZATION_AND_SUMMARY_OF_4
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' |
FDIC Insured Amount | $250,000 | ' |
Cash, Uninsured | $245,000 | $637,000 |
Convertible Preferred Stock, Shares Outstanding | 250,000 | 250,000 |
Convertible Preferred Stock, Common Shares | 2,500,000 | 2,500,000 |
2_ASSET_SALE_Details_Narrative
2. ASSET SALE (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Transfers and Servicing [Abstract] | ' | ' |
Total Purchase Price, Assets | $6,500,000 | ' |
Carrying Value, Purchased Assets | 0 | ' |
Gain on Sale of Assets | 6,500,000 | ' |
Escrow Deposit Related to Asset Purchase Agreement | $300,000 | $300,000 |
3_PREPAID_EXPENSES_AND_OTHER_C2
3. PREPAID EXPENSES AND OTHER CURRENT ASSETS - Prepaid Expenses and Other Current Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Escrow deposit held for indemnification | ' | $300,000 |
Total Prepaid Expenses and Other Current Assets | ' | $300,000 |
4_PROPERTY_AND_EQUIPMENT_Prope
4. PROPERTY AND EQUIPMENT - Property and equipment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property and Equipment Gross | $52,398 | $52,398 |
Less: Accumulated Depreciation | -48,831 | -40,574 |
Property and Equipment Net | 3,567 | 11,824 |
Computer and Office Equipment | ' | ' |
Property and Equipment Gross | 33,868 | 33,868 |
Estimated Useful Life | '5 years | ' |
Furniture and Fixtures | ' | ' |
Property and Equipment Gross | $18,530 | $18,530 |
Estimated Useful Life | '7 years | ' |
4_PROPERTY_AND_EQUIPMENT_Detai
4. PROPERTY AND EQUIPMENT (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation Expense | $8,257 | $2,797 |
5_INCOME_TAXES_Net_Current_and
5. INCOME TAXES - Net Current and Deferred Income Tax Provision (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current (expense) benefit | ($112,686) | $1,578,930 | $43,948 | $31,579 |
Deferred tax benefit | 128,848 | ' | ' | 12,600 |
Increase in valuation allowance | -128,848 | ' | ' | ' |
Income tax (benefit) expense | -112,686 | 1,578,930 | ' | ' |
Continuing Operations | ' | ' | ' | ' |
Current (expense) benefit | -43,948 | -31,579 | ' | ' |
Deferred tax benefit | 50,505 | ' | ' | ' |
Increase in valuation allowance | -50,505 | ' | ' | ' |
Income tax (benefit) expense | -43,948 | -31,579 | ' | ' |
Discontinued Operations | ' | ' | ' | ' |
Current (expense) benefit | -68,738 | 1,610,509 | ' | ' |
Deferred tax benefit | 78,343 | ' | ' | ' |
Increase in valuation allowance | -78,343 | ' | ' | ' |
Income tax (benefit) expense | ($68,738) | $1,610,509 | ' | ' |
5_INCOME_TAXES_Reconciliation_
5. INCOME TAXES - Reconciliation of the Effective Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Income tax calculated at statutory rate | 34.25% | 30.00% |
State income taxes, net of Federal tax benefit | 5.50% | 5.50% |
Temporary differences | -2.15% | ' |
Provision for income taxes | 37.60% | 35.50% |
5_INCOME_TAXES_Details_Narrati
5. INCOME TAXES (Details Narrative) (USD $) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Valuation Allowance, Operating Loss Carryforwards [Member] | Prepaid Malpractice | Accrued Malpractice | ||||
Refundable Income Taxes | $121,677 | $69,585 | $69,585 | ' | ' | ' |
Deferred Income Tax Benefit | 128,848 | ' | 12,600 | 112,686 | 110,000 | 19,000 |
Deferred Tax Assets, Valuation Allowance | $129,000 | ' | ' | ' | ' | ' |
6_STOCKHOLDERS_EQUITY_Details_
6. STOCKHOLDERS EQUITY (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Equity [Abstract] | ' | ' |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Outstanding | 250,000 | 750,000 |
Shares Issued Upon Conversion | ' | 10 |
Shares Converted | 500,000 | ' |
Conversion of Stock, Shares Issued | 5,000,000 | ' |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
7_COMMITMENT_AND_CONTINGENCIES1
7. COMMITMENT AND CONTINGENCIES (Details Narrative) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Apr. 01, 2013 | Nov. 01, 2011 | Jul. 01, 2007 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' |
Rental Payments | ' | ' | $450 | ' | $3,000 |
Rent Expense | 12,259 | 23,150 | ' | ' | ' |
Malpractice Loss Contingency | 100,000 | ' | ' | ' | ' |
Malpractice Payable | $69,000 | ' | ' | $100,000 | ' |
8_CONCENTRATIONS_Details_Narra
8. CONCENTRATIONS (Details Narrative) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Affiliated Entity [Member] | ' | ' |
Concentration Risk | 4.00% | 1.00% |
Third-Party Payor [Member] | ' | ' |
Concentration Risk | 96.00% | 94.00% |
9_Discontinued_Operations_Disc
9. Discontinued Operations - Discontinued Operations (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating expenses: | ' | ' |
Cost of services - physicians | $21,908 | ' |
General and administrative | 458,401 | 100,877 |
Other income (expenses) | ' | ' |
Gain on sale of assets | ' | -6,500,000 |
Income (loss) on discontinued operations | -654,600 | 2,728,215 |
Discontinued Operations [Member] | ' | ' |
Patient Service Revenue (net of contractual allowances and discounts) | 136,377 | 2,785,498 |
Operating expenses: | ' | ' |
Cost of services - physicians | 234,964 | 3,234,533 |
General and administrative | 624,751 | 1,705,449 |
Total operating expenses | 859,715 | 4,939,982 |
Other income (expenses) | ' | ' |
Interest expense, net | ' | -6,792 |
Gain on sale of assets | ' | 6,500,000 |
Total other income (expenses) | ' | 6,493,208 |
Income (loss) on discontinued operations | ($723,338) | $4,338,724 |
9_DISCONTINUED_OPERATIONS_Asse
9. DISCONTINUED OPERATIONS - Assets from Discontinued Operations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets from discontinued operations | ' | $258,668 |
Discontinued Operations | ' | ' |
Accounts receivable, net of allowances | ' | 137,471 |
Prepaid medical insurance, Current | ' | 121,197 |
Current assets from discontinued operations | ' | 258,668 |
Prepaid medical insurance, long term | ' | 144,222 |
Long term assets from discontinued operations | ' | $144,222 |
9_DISCONTINUED_OPERATIONS_Accr
9. DISCONTINUED OPERATIONS - Accrued Legal Settlements (Discontinued Operations [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Discontinued Operations [Member] | ' | ' |
Accrued Legal Settlements | $119,379 | $79,379 |